Is Your Company Meeting Its FRCN Filing Obligations?

Many companies in Nigeria are familiar with filing annual returns with the Corporate Affairs Commission (CAC). However, certain entities are also required to submit their financial statements to the Financial Reporting Council of Nigeria (FRCN) as part of the country’s financial reporting regulatory framework.

This requirement applies to Public Interest Entities (PIEs). Section 77 of the Financial Reporting Council of Nigeria Act 2011 (FRCN Act) defines Public Interest Entities as governments, government organizations, quoted and unquoted companies, and other organizations required by law to file returns with regulatory authorities (i.e. regulated/licensed entities). This excludes private companies that routinely file returns only with the CAC and the Federal Inland Revenue Service (FIRS).

Under Section 8(1)(d) of the FRCN Act, Public Interest Entities must submit their annual financial statements within sixty (60) days of approval by the Board of Directors. Additionally, Section 58(3) provides that if a Public Interest Entity submits its financial statements to another regulator, it must also file a copy with the FRCN within thirty (30) days.

Compliance is important because failing to meet these obligations may attract sanctions under Sections 64(1) and 64(3) of the Act, including fines of up to ₦10,000,000 or ₦20,000,000, imprisonment, or both.

These obligations are separate from the annual returns filed with the CAC, so entities that qualify as Public Interest Entities should ensure they understand and comply with their reporting obligations.